Tobacco and life insurance: Here’s what you should know
Life insurers consider various aspects of your health when determining your premiums. This includes whether or not you’re a tobacco user. Even if you’re not a cigarette smoker, habits like chewing tobacco and smoking cigars can also affect your ability to get approved for insurance and pay a reasonable rate. Bankrate is here to explain how insurance underwriters view different types of tobacco products and what you should know before you apply for life insurance as a tobacco user.
Life insurance for tobacco users
Tobacco use remains the leading cause of preventable death in the U.S., contributing to nearly 480,000 deaths annually, according to the American Lung Association’s 2024 report. The impact of smoking on health is clear, and life insurance companies take these risks into account when determining premiums for smokers. If you smoke, expect to pay higher rates than nonsmokers, as insurers generally categorize applicants into separate risk classes. Tobacco users are often placed in a high-risk category and their premium quotes will reflect that.
Common risk classifications are:
- Preferred Plus
- Preferred
- Standard Plus
- Standard
- Preferred Tobacco
- Standard Tobacco
Let’s say two 35-year-old individuals apply for the same $500,000 30-year term life insurance policy at the same life insurance company. These people have identical risk factors except one of them regularly chews tobacco, and the other doesn’t. The non-chewer may qualify for the Preferred class and pay around $35 per month. However, the chewer is placed into the Tobacco Preferred category and could pay closer to $101 per month due to the higher health risks associated with nicotine and tobacco found in smokeless tobacco. These higher premiums reflect the greater likelihood of tobacco users facing serious health issues, such as heart disease or cancer.
*Quotes were generated from LGA’s term quoting tool using the following factors: birth year = 1990; sex = female; height = 5’ 3”; weight = 130 pounds; ZIP code = 55427. These are sample rates and should only be used for comparative purposes. Your quotes will differ.
While tobacco use can drive up costs, some life insurance providers may offer more flexibility depending on the tobacco product used. And if you quit using tobacco, many insurers allow you to reclassify into a nonsmoker rate category after a period of time — typically after being tobacco-free for at least a year.
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Whole life insurance combines life insurance with an investment component.
- Coverage for life
- Tax-deferred savings benefit if premiums are paid
- 3 variations of permanent insurance: whole life, universal life and variable life include investment component
Term life insurance is precisely what the name implies: an insurance policy that is good for a specific term of time.
- Fixed premium over term
- No savings benefits
- Outliving policy or policy cancellation results in no money back
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Types of tobacco that life insurance companies test for
Life insurance companies evaluate all forms of tobacco use, not just cigarette smoking when determining your risk class and premium. Tobacco use, in any form, often places you in a more expensive smoker classification. However, each type of tobacco product may impact your policy differently, depending on frequency and type of use.
Cigarettes
Life insurance underwriting classifies applicants as being either a tobacco risk or non-tobacco risk. Smokers who use cigarettes regularly are considered high risk to insure, so you’ll be placed into one of the tobacco risk classes if you apply for life insurance as a current cigarette smoker.
Cigars
If you smoke cigars irregularly, some life insurance providers might cut you a break. But underwriting guidelines usually state that you can only smoke a few cigars a year. And it’s possible that some life insurers won’t make a distinction between occasional cigar use and regular cigarette use.
E-cigarettes/vaping
Life insurance providers generally don’t separate vaping from regular cigarette smoking due to the additives, flavors and chemicals that can be harmful to people’s health. If you use e-cigarettes or vaping products, expect that the provider will designate you as a smoker, just like if you used traditional tobacco.
Smoking cessation products
Products that help you quit smoking, like nicotine gum and nicotine patches, still leave traces of cotinine in your body. So, if you use these products, nicotine will show up in your medical tests. This means you’ll still probably be classified as a tobacco risk, even though there’s no actual tobacco in the products.
Chewing tobacco
Though chewing tobacco isn’t smoked, it contains nicotine and carcinogens, which can still have long-term health impacts, including oral cancers and heart disease. Insurers recognize these risks, so even though you’re not inhaling smoke, users of chewing tobacco are typically classified in the smoker category. This classification often leads to higher premiums, similar to what you’d pay as a cigarette smoker. If you chew tobacco regularly, it’s important to shop around, as some insurers may offer slightly more competitive rates than others for this type of use.
Pipe smoking
While pipe smoking may seem less harmful than cigarettes or cigars, it still involves inhaling nicotine and harmful substances. Health risks include respiratory problems and cancers, particularly of the lungs and throat. Most life insurance companies place pipe smokers in the smoker category, leading to higher premiums. However, if you only smoke a pipe on rare occasions, some insurers may allow you to qualify for nonsmoker rates. It’s worth noting that honesty about your pipe smoking habits is essential, as inaccurate information could result in a denied claim.
Marijuana
Marijuana use presents a unique case when it comes to life insurance classifications. Occasional or social use might not automatically place you in a smoker category, depending on the insurer. They typically focus on two key factors: how the marijuana is consumed — whether smoked, vaped or taken as an edible — and how often you use it. For instance, smoking marijuana regularly will likely lead to a smoker classification, with higher premiums as a result. However, occasional use, especially in nonsmoking forms, might allow you to qualify for nonsmoker rates.
If you have a medical marijuana prescription, insurers usually focus more on the underlying health condition rather than the marijuana use itself. That said, the nature of the condition can still influence your classification. Chronic or severe health issues may lead to higher premiums, regardless of how you use marijuana. As with all substances, it’s important to be upfront about your usage when applying for life insurance.
How do insurance companies test for nicotine?
Insurance companies can verify your tobacco use — or lack thereof — through a medical exam. These exams often include saliva, urine, and blood tests. In rarer cases, your insurer may request a hair sample. Your samples are checked for the presence of nicotine or cotinine, a metabolite of nicotine that makes it addictive. These tests are reliable indicators of smoking or other forms of tobacco use, helping insurers accurately assess your risk.
How do insurance companies know if I use tobacco?
In addition to medical tests, most life insurance applications ask if you have used any tobacco products within the last 12 months. It’s important to be honest about tobacco use, because insurers can request everything from prescription histories to comprehensive medical records. They may even review publicly available social media posts to see if you are observed smoking in any photos or talking about using tobacco.
How long does nicotine stay in your system?
The time it takes for nicotine to leave your system depends on factors like how much you’ve used and your body’s ability to process it. Life insurance companies often test for nicotine or cotinine using various methods, and the detection time varies depending on the test.
Blood, urine, and saliva tests are the most commonly used assessments. You may also be asked for a hair test, though it’s not as likely. Here’s a breakdown of common tests and how long nicotine or cotinine can be detected:
- Blood test: Nicotine is typically detectable for one to three days after use, while cotinine can last up to 10 days.
- Urine test: Nicotine and cotinine are usually undetectable after three to four days, but it may be detectable for longer if you smoke menthol cigarettes.
- Saliva test: Saliva tests are considered highly sensitive and can detect cotinine for up to four days.
- Hair test: Hair tests are reliable for long-term detection, showing nicotine use for one to three months. In some cases, nicotine can be detected for up to 12 months.
To qualify for nonsmoker rates, most life insurance companies require you to be tobacco-free for at least 12 months. Even if tests no longer show nicotine, being honest about your smoking history is critical. Lying could result in claim denials or even legal consequences due to insurance fraud.
How former tobacco users can get the same rates as non-users
When you sign up for a new life insurance policy, the provider will probably ask if you’ve used nicotine in the last 12 months. To be considered a nonsmoker for life insurance, you’ll typically need to be nicotine-free for at least a year.
If you already have a life insurance policy and you’ve quit smoking, you can ask your provider for a rate reconsideration once you think you will test clean for nicotine. Again, 12 months is typically the minimum timeframe insurers prefer you to be tobacco-free.
At this point, your provider will likely require you to take another medical exam. You also have the option to search for a different provider and start fresh with a new nonsmoker life insurance policy. But it’s important not to cancel your current policy until a new one is 100 percent active. You don’t want to be left uninsured.
